CRA GST/HST Junk Removal, Bin Rental & Waste Hauling Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Disposal Fees, Bin Rentals, Subcontractors & ITCs

A CRA GST/HST Junk Removal, Bin Rental & Waste Hauling Audit targets businesses providing:

• junk removal
• debris hauling
• renovation waste removal
• furniture/appliance pickup
• estate cleanouts
• construction bin rental
• demolition debris disposal
• scrap metal pickup & hauling
• yard waste removal
• mattress & large-item disposal
• hoarding cleanups
• commercial waste-hauling contracts

CRA aggressively audits this sector because it involves taxable labour, taxable bin rentals, disposal fees, high equipment costs, subcontractor helpers, and cash/e-transfer payments that do not reconcile with GST filings unless documentation is perfect.

Mackisen CPA Montreal specializes in defending junk-removal audits by reconstructing job logs, validating subcontractors, rebuilding ITC documentation, and preparing CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — ALL junk removal, hauling, disposal, and bin-rental services are fully taxable

• s.221 — supplier must collect and remit GST/HST

• s.169 — ITCs allowed only with complete invoices + proof of payment

• s.141.01 — mixed-use asset allocation (truck, trailer, equipment)

• Schedule IX — tax-rate rules for QC/ON/Atlantic jobs

• s.123(1) — defines “service,” “rental,” “tangible property,” “disposal”

Case Law

• Royal Bank v. Canada — strict documentation rules for ITCs

• Northwest Company Inc. — supplier invoices must meet legal standards

• CGI v. Canada — place-of-supply determined by service location

• CRA rulings: junk removal, disposal, bin rentals = 100% taxable, no exemptions.

Learning insight: Junk removal and bin rentals are always taxable — there is no exemption, even if removing debris from a residence.

Why CRA Audits Junk Removal & Bin Rental Companies

CRA flags this industry when it detects:

Revenue Risks

• GST/HST not charged on labour or bin rentals
• disposal/tipping fees billed without GST
• cash/e-transfer jobs underreported
• no invoices for pickup/load/unload services
• bin-rental + labour “packages” misclassified
• multi-province jobs misrated
• deposits not reported in the correct filing period
• weight-based charges inconsistent with GST returns

Subcontractor Risks

• helpers or drivers paid cash without invoices
• subcontractors lacking valid GST/HST registration
• incomplete subcontractor invoices
• employee vs subcontractor misclassification
• T4A/T5018 inconsistencies

ITC Risks

• missing invoices for:
– truck/trailer expenses
– bin rentals/buyouts
– fuel, tires, repairs
– dump fees & waste-facility charges
– PPE & gloves
– tools (dollies, winches, straps)
• imported equipment missing s.218 self-assessment
• personal truck expenses claimed as business
• no proof of payment for ITC claims

Operational Risks

• job logs missing or incomplete
• disposal slips not tied to specific jobs
• skip/bin tracking inconsistent
• mileage logs unsubstantiated
• daily haul-sheets not matching deposits
• property manager contracts incomplete

High-risk operators:

• junk-removal trucks

• bin-rental companies

• renovation debris haulers

• hoarding cleanup specialists

• estate cleanout providers

• construction waste haulers

Learning insight: CRA assumes underreported revenue, invalid ITCs, and subcontractor issues unless documentation disproves it.

CRA Junk Removal & Bin Rental Audit Process

1. CRA requests:
   – invoices (bin rental, labour, disposal, travel)
   – subcontractor invoices + GST numbers
   – dump/disposal receipts
   – bin-tracking logs
   – job logs & calendar
   – bank statements + e-transfer logs
   – truck/fuel/mileage documentation
   – equipment purchase invoices
   – ITC spreadsheets
   – T5018 summaries

2. CRA tests:
   • GST/HST charged correctly on labour + bin rental + disposal
   • place-of-supply rules for out-of-province jobs
   • subcontractor compliance
   • ITC documentary completeness
   • personal vs business truck/equipment use
   • invoices ↔ deposits ↔ GST returns
   • disposal tickets tied to jobs
   • imported equipment → self-assessment

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares complete legal & documentary defense.

Learning insight: CRA rebuilds the year through disposal slips + bin logs + deposits.

Mackisen CPA’s Junk Removal Audit Defense Strategy

• create a Junk Removal Tax Matrix (labour, bin rental, disposal, travel)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST/HST registration
• reconstruct ITC binder (truck, fuel, disposal, equipment, PPE)
• reconcile job logs → deposits → GST filings
• defend vehicle & trailer ITCs using mileage logs
• correct QC/ON/Atlantic rate logic
• justify material waste, weight discrepancies
• rebuild imported-equipment self-assessment
• prepare CRA-standard CPA-certified audit binder
• negotiate elimination of penalties & interest

Learning insight: Junk-removal audits are won with job-by-job documentation + bin tracking + complete ITC records.

Common CRA Findings in Junk Removal & Waste-Hauling Audits

• GST/HST not charged on:
– junk removal labour
– bin rentals
– disposal/tipping fees
– travel fees
• invalid subcontractor invoices
• ITCs denied for missing invoices
• personal truck expenses claimed
• disposal receipts incomplete
• imported equipment missing self-assessment
• bank deposits exceed reported revenue
• supply-and-rental packages misclassified

Learning insight: The biggest reassessments come from invoice defects + missing ITCs + unreported cash/e-transfer jobs.

Real-World Results

• A Montreal junk-removal company avoided a $186,000 reassessment after Mackisen CPA rebuilt bin logs & subcontractor documentation.
• A bin-rental operator reversed a $142,000 ITC denial by reconstructing disposal slips and truck expenses.
• A debris-hauling contractor eliminated penalties by correcting GST/HST on bin rentals and disposal fees.
• A hoarding-cleanup team cleared CRA findings through full calendar → deposit → GST reconciliation.

Learning insight: CRA backs down when shown organized, CPA-certified evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST junk removal audit, CRA bin rental audit, taxable disposal fees Canada, Mackisen CPA Montreal
Secondary keywords: waste hauling GST, ITC denial junk removal, subcontractor GST audit, disposal ticket GST rules

Learning insight: Junk-removal audits produce strong SEO because of the high number of small operators entering the industry.

Why Mackisen CPA Montreal

With 35+ years defending waste-hauling, bin-rental, demolition debris, and junk-removal companies, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST audit defense for the waste-management sector.
We understand bin logistics, disposal facilities, subcontractor risks, and CRA methodology at an expert level.

Learning insight: Junk-removal audits require documentation precision, bin-tracking discipline, and ITC accuracy — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your junk-removal, bin-rental, waste hauling, or disposal-related business, contact Mackisen CPA Montreal immediately:

📞 514-276-0808
📧 info@mackisen.com
🌐 mackisen.com

Learning Conclusion:

A CRA GST/HST Junk Removal & Bin Rental Audit tests labour taxability, bin rental GST, disposal fees, subcontractor compliance, ITC documentation, and multi-province tax rules.
Mackisen CPA Montreal ensures full protection from reassessments.